British regulators have approved Paramount Skydance’s proposed US$110 billion acquisition of Warner Bros. Discovery, removing two key regulatory hurdles as the deal continues to face legal challenges in the United States.
The Competition and Markets Authority (CMA) said on Thursday it would not launch an in-depth Phase 2 investigation after concluding that the merger was unlikely to significantly reduce competition in the UK.
The regulator reviewed the transaction’s potential impact on film distribution, television and film production, streaming services and children’s television channels, finding that the merged company would continue to face strong competition from rivals including Disney, Universal, Netflix, Amazon and Apple.
Separately, UK Culture Secretary Lisa Nandy decided not to order a public interest review after Paramount offered legally binding commitments aimed at safeguarding media plurality and editorial independence.
Under the agreement, Paramount pledged to maintain the editorial independence of its UK media brands, including Channel 5 News, Nickelodeon, Cartoon Network and CNN International. The company also committed to increasing funding for news, children’s programming and original drama, while submitting annual compliance reports to the government. Most of the commitments will remain in force for five years after the transaction is completed.
Paramount agreed in February to acquire Warner Bros. Discovery for US$31 per share, valuing the deal at US$81 billion in equity and US$110 billion including debt.
Although the European Commission granted conditional approval last month, the merger remains under legal challenge in the United States, where 12 state attorneys general and the Writers Guild of America argue that the combination of two major Hollywood studios could reduce competition.
The companies have agreed to delay completion of the transaction until June 1, 2027, or until the US legal challenges are resolved.